Bank of America Short Sale Negotiation – Esignature Misses MARK

Bank of America missed the Mark on E-Signing for Short Sales

If you negotiate short sales for a living like we do in Massachusetts, New Hampshire and Maine, you may have noticed Bank of America recently announced it was allowing digital signatures on certain short sale documents.  This is a HUGE move as they were one of the few servicers that didn’t allow digital signatures on short sale documentation.  I was thrilled to see this, until I read the fine print.

First digital signatures are only allowed on the pre-approved short sales or HAFA short sales offered by Bank of America.  Why they turned their noses up at allowing a traditional short sale homeowner the ease of being able to submit digitally signed documentation has yet to be discussed by BofA, but the ability to streamline paperwork for traditional short sales seems to be a glaring oversight.

Second, if you are doing a pre-approved or Coop short sale or HAFA short sale through Bank of America, you can’t just digitally sign documents without jumping through extra paperwork hoops. The Bank of America Etransaction consent disclosure must accompany any esigned documents. You can find BofA’s full requirements here

Lastly, BofA in their move to streamline documentation with their short sales missed one HUGE part of the puzzle.  The 4506-T form allows third parties to request borrower transcripts.  This is one of the 5 pieces every short sale negotiator needs at the initiation of a Bank of America short sale.  You cannot start the initiation of a short sale without this form, however, Bank of America seems to have missed the announcement that the IRS will allow digital signatures on this form.  Why they won’t allow an signature on this form seems to be a misstep, but be aware that you will still be required to get WET signatures on this form.

As for us, it’s business as usual.  Most of our homeowners do NOT participate in the COOP program or are qualified for HAFA when we submit the short sale package WITH THE OFFER, so most of our homeowners won’t qualify to be able to esign their short sale paperwork.  It is frustrating to see Bank of America attempt to streamline the process, but fail to address a huge portion of the short sale homeowner population.

Massachusetts Short Sales!

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